The Government of Ghana will borrow GH¢2.6 billion as fresh amount to meet its financing requirements in the first quarter of 2021.
This is made up of 91-day Treasury bills, 182-day Treasury bills, 364-day Treasury bills, 3-year bond, 5-year bond, 6-year bond, 7-year bond and 20-year bond.
According to the Government Issuance Calendar for Quarter 1, government plans to issue a gross amount of GH¢22.3 billion, of which GH¢19.7 billion are to be used to settle maturing debts or rollover.
Per the calendar, the government will float GH¢10.4 billion as 91-day T-Bills, which actually is the biggest of the financial instrument to be issued. This is followed by the 2-year bond which an expected GH¢4.13 billion will be issued.
The 182-day T-Bills, 3-year bond and 364-day T-Bills, will follow suit with expected issuance of GH¢1.7 billion each and GH¢1.405 billion respectively.
GH¢1.4 billion, GH¢800 million, GH¢700 million and GH¢111.4 million are the expected issuance for the 5-year bond, 6-year bond, 7-year bond and 20-year bond respectively.
Whilst, the 91-day and 182-day Treasury bills will be issued weekly, the 364-day T-Bill will be issued bi-weekly. This will be done through the primary auction with settlement being the transaction date plus one working day.
Securities of 2-year up to 7-year will be issued through the book-building method.
The issuance of the 20-year bond will also be done via a shelf offering and re-opened based on investors request and on market conditions.
The government said it will update the issuance calendar on a monthly rolling basis, to reflect a full quarter financing programme.
Public debt stock hits GH¢273bn in September 2020
Ghana’s public debt stock hit GH¢273.8 billion, about 71 percent of Gross Domestic Product in September 2020, according to the November 2020 Summary of Financial and Economic Data by the Bank of Ghana.
That was equivalent to US$48 billion.
Between July and September 2020, the nation added GH¢10.7 billion to its public debt stock.
Source: BusinessZone Online